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When it comes to personal finance advice, the mantra is usually the same: Cut back on those subscription services.

But me? I'm all about a good subscription.

In fact, I'm about to add another one to my already full lineup — a monthly pass to the car wash down the street.

Before my life as a toddler taxi service, I thought those unlimited car wash passes were a bit indulgent. Who really needs to wash their car multiple times a month? Cars are meant to live outside, collecting a few splattered bugs and some pollen along the way. They're not supposed to be pristine all the time.

But my little chaos creators, Michael and Henry, have changed my mind. The top priority in their lives seems to be turning my car into their own personal crumb kingdom. Juice bottles rolling around, snack crumbs ground into the seats... my car has become a mobile toddler zone.

Suddenly, taking my car through the wash — with their turbo vacuums and fancy interior cleaning products — doesn't seem so crazy. It's a necessity. And at $10 a month for unlimited washes, it's also pretty affordable.

A few other necessities in my life I'm happy to pay a subscription for?

$300/month for local housekeeping service

$150/month for toddler meal delivery service (saving me hours of researching, planning, and meal prepping while still ensuring the boys get all the food/calories/nutrients they need)

$60/month for WSJ, Barrons, and a number of other financial news sites I read

$12/month for Amazon Prime

$9.99/month for Instacart+ (groceries straight to my door whenever I need them)

$15/month for Hulu/Disney+/ESPN bundle (all the content under the sun)

$5/month for Spotify Plus (commercial-free music)

$5/month for Rocket Money (helps me track transactions and keep an eye on our big financial picture; coincidentally, it also helps me keep track of our subscriptions so they don't get out of control)

$2/month for an app that helps me tune my ukulele

These services all serve a purpose in my life, whether it's saving time, providing entertainment, or just making daily tasks a bit easier. But not every subscription is so useful. In fact, some of them might be quietly draining your wallet without offering much in return.

That's why it's worth taking a step back and asking: Are all your subscriptions pulling their weight? Or are some of them just dead weight?

Let's dive into the wild world of subscriptions and figure out how to keep the ones that matter — and cut the ones that don't.

The Subscription Economy: How Did We Get Here?

Subscriptions are everywhere. From streaming services to meal kits, from music platforms to grocery deliveries — chances are, if there's a service you use regularly, there's a subscription for it. But how did we end up in a world where so many of us have multiple subscriptions that we pay for month after month?

It didn't happen overnight. The subscription model has been around for decades, but it's seen explosive growth in recent years. Why? Convenience. For a relatively low monthly fee, you can have access to a wealth of content, products, or services that would otherwise cost you much more. Plus, with the rise of the digital economy, it's easier than ever to sign up for — and forget about — these recurring payments.

But the pandemic supercharged this trend. With more people staying home, services like streaming platforms, grocery delivery, and online fitness classes became lifelines. What was once a ‘nice-to-have’ became a ‘must-have’ for many households. Meal kit orders were up by 36% from January 2020 to June 2022, reflecting how quickly these services became embedded in our daily lives.

Companies quickly noticed this shift and started designing more of their offerings to be "sticky" — easy to start, hard to quit. And as people continue to use these services, they start viewing them less as optional luxuries and more like utilities — essential parts of daily life.

Yet, the ease and appeal of subscriptions can be a double-edged sword. It's easy to lose track of what you're paying for, and before you know it, those small monthly charges can add up to a significant expense. This brings us to the financial impact of subscription services.

The Financial Impact: How Subscriptions Can Drain Your Wallet

Let's talk numbers. On their own, most subscriptions seem harmless. $10 here, $15 there — it's not much, right? This can lead to what I like to call "subscription creep" — the gradual accumulation of services that slowly but surely drain your wallet.

Imagine this: You've got a few streaming services, maybe a music platform, a couple of delivery services, and a few more niche subscriptions. Before you know it, you're paying over $100 a month, or more, without even realizing it.

In fact, a study by West Monroe revealed that 100% of respondents underestimated their subscription spending, with some underestimating by more than $400 per month.

Of course, that's exactly how companies have designed it. These small, recurring payments can also encourage a "set it and forget it" mentality. About 70% of consumers continue paying for unwanted subscriptions simply because they forget to cancel or find it too difficult to do so. Once a subscription is set up, it's easy to let it keep renewing, even if you're not using it as much as you thought you would.

But here's the thing: Those extra dollars you're spending on underused subscriptions? They could be working harder for you somewhere else. That $60 a month might not be breaking your budget, but it could be the seed money for something bigger. Maybe it's the start of a sinking fund for that dream vacation next summer. Or perhaps it's the extra boost you need to max out your retirement contributions or kickstart an investment portfolio you've been meaning to build.

The point is, money that's tied up in dead weight subscriptions is money that's not being put to better use — whether that's achieving your financial goals, indulging in a little splurge, or just building a safety net for the future. So yes, it's worth caring about. Because those dollars can add up to something meaningful when they're put in the right place.

So, what can you do about it? It starts with taking a closer look at your subscriptions and figuring out which ones are truly worth keeping — and which ones are just dead weight.

Identifying the Culprits: Analyzing Your Subscriptions

The first step in taking control of your subscription spending is to figure out exactly what you're subscribed to. Sounds simple, right? But you might be surprised at how many services you've signed up for over the years.

Start with an audit. Go through your bank statements, credit card bills, and app subscriptions to identify all your recurring payments. Make a list — yes, an actual list — of every subscription you're currently paying for.

[If you recently made a budget, you should have all this information easily available. Don't have a budget yet? Read Budgeting Backward: My Mistakes and the Method That Saved My Finances.]

Once you've got your list, it's time to get ruthless. Ask yourself some tough questions about each service:

- How often do I use this subscription?

- Does it save me time or money in other areas of my life?

- Would I miss it if I canceled it?

- Is there a cheaper or free alternative that could still meet my needs?

For example, you might find that you're paying for two or three streaming services but only regularly watching one. Or maybe there's a fitness app you subscribed to in a burst of motivation, but haven't opened in months; she wrote while glancing at the Peloton in the corner of the room (don't worry, I remembered to pause that $45/month subscription).

Be honest with yourself. If a subscription isn't pulling its weight, it might be time to let it go.

Now that you've identified which subscriptions are truly worth keeping, it's time to talk strategy. How can you reduce your overall costs without sacrificing the services that add value to your life?

1. Prioritize: Start by deciding which subscriptions are essential and which are nice-to-have. Maybe you really need that grocery delivery service because it saves you hours each week, but do you really need multiple streaming platforms?

2. Pause.Did you know many subscriptions give you an opportunity to pause before you cancel? If there's a subscription you aren't using now but really think you'll pick up again in the future, try pausing it for a few months.

3. Rotate.Consider rotating your subscriptions. For example, subscribe to one streaming service for a couple of months, then cancel it and switch to another. This way, you're only paying for what you're actually using at any given time.

4. Bundle.Look for opportunities to bundle services. Sometimes, you can save money by getting several services together at a lower combined rate. Just be careful not to over-bundle and end up paying for services you don't really need.

5. Negotiate.Don't be afraid to ask for a better rate. Most of us are familiar with the idea of negotiating our cable bill or phone plan, but you can also negotiate the price of your streaming service. Companies are often willing to offer discounts or promotions if you ask. And if canceling seems difficult, that might be a sign that the company is hoping you'll give up trying. Stay persistent.

5. Cancel. Finally, if a subscription just isn't worth it, cancel it. Most services make it easy to unsubscribe — and remember, you can always re-subscribe later if you really miss it.

How to Avoid Subscription Creep for Good

You've cut the dead weight. Your subscription roster is leaner, more focused. But how do you keep it that way?

The key is to stay vigilant. Make a habit of reviewing your subscriptions regularly. Set reminders for when free trials are about to end or when annual renewals are coming up. Keep an eye on your bank statements for any new charges that might have slipped through the cracks. You can also download apps that keep track of your subscriptions for you. (Just don't forget to weigh whether it's worth the price.)

It's also a good idea to set a budget for your subscriptions. Decide how much you're willing to spend each month, and stick to it. This will help you avoid overspending and keep your subscriptions in check.

So, go ahead — audit your subscriptions, make some cuts, and keep the ones that truly add value to your life. Subscriptions can be a great way to save time, enjoy entertainment, and make life a little easier. And at the end of the day, your money should be working for you, not the other way around.